Because Agents May Not Set the Same Goals and Objectives $\text {Goal aligriment costs}$

question 18

Multiple Choice

Because agents may not set the same goals and objectives as principals, organisations may experience which of the following general agency costs?
I $\text {Goal aligriment costs}$
II $\text {costs caused by excharige rate movernents}$
III $\text {Monitoring costs}$

• A) II and III only
• B) III only
• C) I and III only
• D) I, II, and III

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Definitions:

Short Interest

The total number of shares of a particular stock that have been sold short by investors but have not yet been covered or closed out.

Bearish Signal

An indication in financial markets suggesting that the price of an asset may decline.

Bullish Signal

An indicator that suggests an asset’s price is likely to rise. These signals are perceived through various forms of market analysis, including technical indicators and trends.

Relative Strength

A measure of the performance of a stock or financial asset compared to a market index or other stocks over a certain period.